The Oil Factor in Relations between the Azerbaijan Republic and the RSFSR

Abstract

Relations between the Azerbaijan Republic and the Soviet Republic of Russia can be conditionally divided into two stages. The first stage covers the period from the declaration of independence of Azerbaijan in May 1918 to moving of the national government to Baku in September 1918, and the second – from September 1918 to the fall of the Azerbaijan Republic in April 1920. At both stages, the oil was often the key factor in relations between the two states. Although the Soviet Russia did not recognize the Azerbaijan Republic, ruling circles in Baku were in favor of establishing relations with Moscow. This desire was primarily due to economic reasons, since the Russian market was the main consumer of Baku oil. By the beginning of 1920, the Red Army had defeated Denikin and approached the borders of the South Caucasus countries. Under such circumstances, the Moscow made an attempt to involve Azerbaijan in the civil war in the south. Simultaneously, the Bolsheviks power combined this policy with the establishment of the first economic contacts. Thus, it was in 1920 that negotiations were held in Baku for the export of oil products to Astrakhan. The Azerbaijani government agreed to maintain economic contacts with the Soviet Russia without establishing diplomatic relations. However, subsequent events showed that all these negotiations and missions were a tactical maneuver by Soviet Russia aimed at lulling the vigilance of the Azerbaijani government and creating an impression of the absence of aggressive intentions.

Keywords:

Baku oil, Soviet Russian, First Azerbaijan Republic, oil export, commodity exchange